Understanding profit and profit margins is critical for business owners and corporate decision makers to reach their ultimate goal – earn the money they need to be successful and grow their company.

A: Profit margins measure how much money a company keeps after factoring in the cost of doing business (expenses). Since you want to remain profitable, you’ll have to pay close attention to margins ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Michael Boyle is an experienced financial ...

If you have $100,000 in pretax profit, that's better than running in the red – but is it good enough? That's where the pretax margin calculation comes in by transforming the dollar amount into a ...

Your business can show a profit without being profitable. When you end a quarter with a profit, your company made more than you spent. However, that doesn't mean you're earning enough to survive for ...

Ignore your financial statement, and you effectively ignore the health of your company. A good manager should be able to deftly use the gross margin to understand which areas of the company are ...

"We lose money on each transaction, but we make it up in volume." It’s an old joke, but when it comes to restaurant food cost, it reminds us that knowing the profit margin of each menu item is ...

The Forex trading process has become quite popular in a money-making capitalist world. However, one should learn certain basics before getting into the action to seize such trading opportunities. By ...

Profit is a key indicator of a company’s long-term viability and success. Understanding your small business’s profitability can help with cost-cutting, pricing, and investment decisions. Here’s ...

In business, the terms gross profit margin and net profit margin are often used interchangeably, but shouldn’t be as they both have different uses for business metrics.This guide’s main aim is to ...